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Looking at the Consumer Facing Side of Egypt's Military-Industrial Compound

2/8/2012

7 Comments

 
Started looking into the military’s civilian production and sales to get an idea and, while I have yet to go through all the info, it is one large, complex web of interconnected companies and personalities.  All of the information is from public sources, websites, Google searches, etc.

Some key names and companies keep popping up in large investment projects and having lived in Egypt you can see the potential correlation between unnecessary public spending projects and the army’s economic interest.  While there is no direct link, it is interesting to see random video monitors pop up in the middle of Cairo (e.g. Gama’eat Al Dawal Street intersection with Gezirat Al Arab) and you see that the military produces THESE.  Additionally, the traffic signal digital display countdown timers that have been installed in many main streets (e.g. Battal Ahmed Abdel Aziz after exiting off 6th October bridge) and a military company produces THESE. Also, it is interesting to see that they produce billboards then advertise their OWN PRODUCTS (guessing that has something to do with the parliamentary budget oversight issues).

To give you an idea of the range – the army produces anything from CRATES to HOTEL DINING/RECEPTION to LAVISH HOTEL ROOMS (to the more simple ones) to COMPUTERS to TVS to DVD PLAYERS to INCUBATORS to DATA CENTERS to YACHTS!! (CLICK on item names to see actual pictures of military products in each category)

While I have been able to come across names of companies and types of goods produced and some specific consumer-facing product names (see list below for some of the identified, more commonly known ones).  It has been far more difficult to come across any financials (especially recent ones).  One of the companies had $36M and employed 1,517 (apparently sometime around 1998?).  Another company (Jeep and other light vehcle production) employs over 17,000 people (unclear of date).  One of the larger holding companies made $100M in the 1980s apparently.

While I am still pouring over the information, there are some initial interesting tidbits:

An engine factory writes:
  • Delivery of drinking water & sewage drainage projects worth LE365M+ (around $60M) 
  • With another LE964M+ (little over $160M) in the process of being delivered

Around 1999 three of these companies were placed under sanctions by the US due to the transfer of dual use technologies provided by the US to North Korea

A factory focused on electrionics states:
  • Produced of over 50k TV sets
  • Produced of over 50k computers
One factory that focuses on equipment for the railway claims to have produced:
  • 2,369 rail coaches/cars 
  • 16,200 freight transport cars
  • 36,591 bogies
  • 225 subway cars
  • 250 “trommay” cars

Another factory that is focused on aircraft (?!?!?) claims :
  • Delivery of drinking water & sewage drainage projects worth LE566M+ (little less than $100M) 
  • With another LE602M (little over $100M) in the process of being delivered


Below are a list of some of the companies (compiled from various sources thanks to great work, will cite but just so many and don't have time right now, apologize - but includes jadaliiya, @arabist, Ahram, Robert Springboard writing, various Google books, etc.) - also, may be some repeats:
  • 'Wataniyya'
  • 'Queen', the military's cleaning services company
  • high-tech slaughterhouses in East Uwaynat 
  • cabins to rent out in the north coast Sidi Crir resort last summer; 
  • apartments for sale in Kuliyyat al-Banat residential buildings
  • Safi spring-water company, aviation services, security services, travel services, footwear production, and kitchen-appliance manufacturing.
  • television sets, jeeps, washing machines, wooden furniture and olive oil, as well as bottled water under a brand reportedly named after a general’s daughter, Safi
  • Queen,’ the army-produced brand of pasta

From random companies/factories:
  • Civilian products are the same, in addition to precision casting. casting of hematite iron, grey iron, and steel.  
  • Civilian products include shotgun cartridges, semi-automatic bakery lines, food cans, aerosol containers, aluminum containers
  • Civilian products include dynamite, industrial nitro-cellulose, sodium toluene sulphonate, potassium chlorate, shotgun powder, hydrogenated oils, blasting services
  • Civilian products include electric motors, electric fans, electric switches and sockets
  • Civilian products include water meters; electric meters; fastners; bolts & nuts and incinerators.
  • Civilian products include radiators, sewing machines, medical and surgical instruments, general cutting tools, oil coolers, agricultural machines, shotguns, air rifles, meat mincers, scissors, kitchen knives, and wooden furniture
  • Civilian products include irrigation sprinklers, aluminum foils, brass, copper and aluminum brass, sections, strips, plates, tubes, blocks, castings, sheets, wires and cables, water combinations, aluminum tea pots, copper tables, insulated electric wires, copper and aluminum cables, and conductors
  • Civilian products include formaldehyde and hexamine paints, safety and detonating fuses, rubber and plastic products, and adhesives
  • Civilian products include fire extinguishers, gasoline pumps, automatic balances, pressure cookers, stainless steel cooking pots, gas bottlers, gas regulators, cutlery, pistons, piston rings, cylinders
  • Civilian products include paints, inks, varnish, beauty products, potassium chlorate, and anesthetic ether
  • Civilian products include television receivers, radios, TV antennas, and personal computers
  • Civilian products include electric meters, water meters, ball bearings, bolts and nuts, degreasing solutions, phosphating solutions, and axle boxes
  • Civilian products include gas rings, gas ovens, solar water heaters, refrigerators, freezers, air conditioners
  • Civilian products include diesel engines, generating sets, welding sets, pumping sets, bearing shells, compressed air sets, and tractor engines
  • Civilian products include lathes, drilling machines, grinders, wood sawing machines, shapers, milling machines, automatic and semi-automatic bakery lines, agricultural machinery and equipment
  • Engaged in the production of passenger cars, Jeep Wranglers, and 4x4 Jeep Cherokees. This Egyptian and American joint venture was formed in 1977, and company employs over 17,000 workers producing military jeeps and other light vehicles
  • Engaged in the production of intermediate chemicals; incecticides and fertilizers; house insect insecticides; industrial gases; cosmetics and other aerosol products
  • Civilian production includes microscopes
  • El-Nasr Company for Services and Maintenance (Queen Service) - security; maintenance works for electrical and water networks; purging works; automobile service stations; and vocational training
  • Armed Pharmaceutical Factory - Equipped with West German machine tools (Johann Weiss), this factory makes such pharmaceutical products as tincture of iodine and bandage
  • Cutleries : sets of cutleries of extra ordinary beauty and attractive styles ( normal and gold coated ) , made of stainless steel.
  • kitchen sets : Pressure cookers, Cooking pots , Frying pans , Casseroles, tea & sweet Sets , Plates and trays  ( normal and decorated) , made of stainless steel.

  • Fire extinguishers 99 :  With dry chemical powder , foam and carbon dioxide ( in different types and sizes form 1 kg to 250 kg ).
  • Fire detection and alarm systems , Automatic Fire extinguishing Systems and light fire fighting vehicles.
  • LPG cylinders 30 lt. And 60 lt. , cylinder valves and gas regulators
  • Automotive feeding industries:
  • Internal combustion engines parts ( Pistons,  piston  pins, rings and cylinder liners 
  • Automotive shock absorbers.
  • Automotive steel wheels.
  • Special manufacturing tools workshop for producing gauges, dies (drawing cutting , forming , pressing , forging and carting tools ), jigs and fixtures for Metal and Bakelite.
7 Comments
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8/15/2012 08:50:37 pm

Egyptian President Mohamed Morsi was able to play on rivalries within a military hierarchy in decline, weakened by the recent attack in Sinai, to preclude the Marshal Tantawi, Minister of Defence for 20 years, analysts say. The announcement of the retirement of Marshal, head of the Supreme Council of the Armed Forces (AFSC), and "number two" of this proceeding, the Chief of Staff Sami Annan, marked a dramatically President's desire to rein in Islamist military machine with which he had a conflict.

For this, Mr. Morsi could benefit from rivalries between generals and a decline so far hidden away from the "old guard" military while trying to arrange a graceful exit for those sidelined.
"The decision to drop Morsi Tantawi and Annan confirms that the AFSC was in fact powerless, he was a paper tiger" wrote a columnist for Egypt's most prominent, Ibrahim Eissa, the newspaper "Al-Tahrir. "

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